Skip to main content

About this Show

Closing Bell

News/Business. Maria Bartiromo, Bill Griffeth. A guide through the most important hour of the Wall Street trading day. New. (CC) (Stereo)

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
528

PIXEL HEIGHT
480

TOPIC FREQUENCY

Us 8, Apple 7, Pfizer 7, U.s. 7, Johnson 6, Steve 5, America 5, Zuckerberg 4, Dell 4, Alan Simpson 4, Aflac 3, Hank Smith 3, Washington 3, Johnson & Johnson 3, Greenberg 3, Mark Zuckerberg 2, Maria 2, Lexus Ls 2, S&p 2, Goldman Sachs 2,
Borrow a DVD
of this show
  CNBC    Closing Bell    News/Business. Maria Bartiromo, Bill Griffeth. A guide  
   through the most important hour of the Wall Street trading day....  

    January 15, 2013
    3:00 - 4:00pm EST  

3:00pm
do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. here's another reason to freak out over the flu. hand sanitizer production has slowed over the last year or so, thanks to slowing sales over the last couple of years so if you want to go and get some you may not be able to. the bottom line there. >> my advise is hoard as much as you can and sell it for ten times the retail price on the black market. >> great advice. >> thanks for watching "street signs," everybody.
3:01pm
>> "closing bell" is coming up next, everybody. see you tomorrow. hi, everybody. we enter the final stretch. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. hi, bill. >> how you doing, maria? i'm bill griffith. did facebook overpromise and underdeliver? now what we know what its big mystery announcement is, investors unimpressed. stock down on record volume today. >> this may be the day apple closes behind 500. it will be the first time that's happened in 11 months. herb greenberg is here on why he thinks he could get worse for apple. >> and the always colorful senator alan simpson is with us, no bigger advocate of getting america's debt and deficit under control, but does he think the debt ceiling is the leverage that republicans should use to get that done? he'll join us exclusively, and i know you're going to ask him
3:02pm
about that. >> absolutely. >> let's check out the action on the street right here. here's how things are shaping up with less than an hour to go. the dow jones industrial average hitting basically at the highs of the day. had been down around 60 points earlier. talking about a gain of 20 points on the blue chip average. fractional move at 13,527. nasdaq chart pattern looks similar. take a look though it's negative. down about nine points on the nasdaq, a quarter points lower and the s&p 500 looks like this. similar chart pattern as the dow up a fraction on the standard & poor's but still that's the high of the afternoon. let's get more on the markets in today's "closing bell" exchange by hank smith and steve from comcast funds and our own rick santelli. >> hello. >> good to see you guys. >> thank you so much for joining us. >> hank smith, we haven't heard from you in a while. let me kick this off with you. how are you investing going into all of these earnings coming out from the banks this week as ahead of that debt ceiling debate? >> sure, maria. our equity portfolios are fully
3:03pm
invested. we see no reason 2013 can't deliver very similar returns as 2012 did. the fact is we still have a good fundamental backdrop. the economy is expanding. it's not contracting or growing. value sheets are strong and valuations are very attractive so what is there not to like? >> you're our resident skeptic today, and i would point not to the normal averages that we quote every day, but look at the dow transportation average which could close at an all-time high today. the transportation companies, often a leading indicator for the economy. if they are doing well. chances are the economy is going to get better. wouldn't that make you want to buy stocks right now. >> it does. we're not -- we're actually a little bit more bullish, esespecially the first six months of the year. we still are expecting slow growth, commodities where we're shorting assets, but in terms of
3:04pm
u.s. and in terms of international, we do expect growth, and we are excited about what's happening, but later on in the year i think it's going to be another story. >> what do you mean by that, later on in the year? what's going to be the upset later on in the year? >> there's a lot more issues coming out in terms of europe later in the year. right now it's all about -- it's all about expectations of positive growth that we have in the u.s., but, you know, we still have issues, and investors have got to focus on -- we've got an incredible spending problem. there's still problems in europe so we don't really believe that this year is going to be like last year, but we do expect small positive returns though. >> rick santelli, i want to ask you about the race to the bottom in the currency markets. the euro is at an 11-month high against the dollar and the yen
3:05pm
is scheduled to move lower if the bank of japan wants its way, and a lot of people are saying that could benefit gold in a big way which is starting to move higher again. what do you make of the currency wars going on right now? >> i think they are going to heat up and the central players where it heats up will be between germans and the japanese over exports of cars, but i agree with you, and i also think that if we look at how they are going to develop in the near term, i would think that the trigger for that will be when the dollar/yen, for example, gets above 90 and the euro/yen significant levels, and real quickly i've had a lot of e-mails about problems with our bills, but not the ones that you think. t-bills. at the end of 2011 the last time we had a debt ceiling issue we saw bill rates for four week bills and three-month bills start to move up. today we had a one-month bill auction, trading on at five basis points and the auction went off at 9.5 basis points and many are attributing to
3:06pm
anxieties and rule 2a7 from the s.e.c. which gives you rules on what kind of time frames can you have with respect to holding in the money funds and a little bit of selling today may be from that group as well. >> anxiety over the debt ceiling crisis? >> exactly. about getting principal back as ridiculous as it may sound. >> david, jump in here. feels like a slow volume day again. are people waiting on some of the banks earnings because tomorrow we've, of course, got some bigies? >> waiting on earnings, but earnings expectations are very low. i think 60% to 70% of stocks will beat their estimates this quarter, and i'm going to watch for guidance over the balance of the year, maria. now you'll have three guests here who are going to be favorably disposed to the market and that makes me a little bit nervous. nevertheless i think the average individual investor is skill quite skeptical. institutional markets are yet, still, and yet 60% of all stocks in the s&p are yielding more
3:07pm
than the ten-year u.s. treasury, and that type of environment where dividends are going to grow 10% this year, that can be a good backdrop on stocks like ford that developed its dividend last week, lowe's on the home improvement side and dresser injuries and transindustries. >> with all due respect, jpmorgan out yesterday saying that maybe the dividend play is last year's play and maybe now is the time to get into riskier assets in equities because they feel like the economy is going to start to pick up. so you're sticking with the dividend play though? >> i am. for these two reasons. one, bill, the growth of dividends is the story. not the absolute yield. it's the growth in dividends and that can be names like qualcomm, apple, ford is my example. second. when investors look much like 1994 and 1999, when interest rates went higher, the ten-year treasury was yielding, was returning minus 3% for those two
3:08pm
calendar years. people will come back to the stock market, but they will come back to the stock market in the safer yield and dividend-growing stories. that is why i think the catalyst for david dents will still be in place in respect to what jpmorgan said. >> there was definitely a sigh of relief after that fiscal cliff deal where dividend taxes just went to 20%. a lot of upset and anticipation that it would go higher but 20% is a great number. >> exactly. >> steven hammer, setting some highs of the day right now. you're bullish at least for the short-term here, how much higher do you go? >> i have no doubt in the next six months. we could potentially see anywhere from a 5% to 10% increase in the u.s. stock market, but we need to be cautiously optimistic, and to us it's all about earnings and it's all about volatility which is why we wait based on risk, and investors need to be cautious to where they invest money and they still need to stick with quality. >> okay. hank smith. what's going to take us to these
3:09pm
new highs, do you think? >> well, look, i think we've seen in the beginning of this year finally some money coming out of bond mondayfunds going i equity funds. for five years it's been just the opposite so perhaps we're at the very beginning of what could be a very powerful trend providing a ton of fuel to the equity markets, and we agree. look, dividends are still very attractive, as long as you have dividend yields in excess of fixed income yields. this is not a crowded trade. it's only a crowded conversation, so it is still a great opportunity for investors coming out of bond funds to get into dividend payers. >> what did you say, david? >> it's the growth in dividends that's the real story. >> right. >> versus the absolute yield. you vennel to look at utilities to see an underperformer with the high yield versus those companies that are growing the dividend. that's the key. >> good point.
3:10pm
>> thanks, gentlemen. appreciate your time. goldman sachs and chase kicking off the big stream of bank earnings coming out tomorrow that maria was mentioning. kayla tausche has our preview. >> reporter: five banks on deck this week. tomorrow we're expecting a document dump from jpmorgan, not just its fourth quarter earnings, also an exhaustive report on misdoes, record profits and still expected over $24 billion in revenue. the street will be watching goldman sachs for big jumps in profit to 378 per share and looking for cues on corporate confidence and wall street compensation. on thursday we have noising files on citigroup and bank of america taking charges from mortgage settlements which could slash b of a shares. 96 cents is what the street expects. morgan stanley out on friday, and what investors want is
3:11pm
questions on restruck tourituri layoffs. >> market at the highs of the day. up just about 19 points. >> herb greenberg with a question about apple, the stock in danger of close below $500 a share today and now herb is wondering out loud is apple is out of big ideas. he's coming up next. >> and facebook's big idea, the big social search announcement hours ago, investors not cheering this news, not yet, but will mark zuckerberg's new idea be a revenue driver? check it out and after the bell don't miss my exclusive interview with alan simpson. we'll get his take on whether the debt ceiling should be used to force spending cuts from the government.
3:12pm
♪ ♪ ♪ [ male announcer ] some day, your life will flash before your eyes. ♪ make it worth watching. ♪ the new 2013 lexus ls. an entirely new pursuit. with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac.
3:13pm
cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com.
3:14pm
welcome back. this is the chart of the day. if this is going to continue right here and close, this is going to be the first time that apple closes below $500 since february of last year.
3:15pm
so for this year apple is the worst performing stock on the nasdaq 100 and the second worst on the s&p 500, bill. >> our herb greenberg thinks he knows, why and he says apple may be having what he calls an innovation problem, arguing that new generation of devices like the iphone just are not different enough to make people rush out and buy them. i always do that, jay, think of peter, paul and mary. jay yarrow from business insider argues that a short-term view of the bigger apple story is what we need right now. herb, make your case. you have an iphone 4s as you point out and you've been buying other apple things but you're not impressed by the incremental innovation that they have got, right? >> whether it's an iphone 4s or 5 or mac book pro that i use that is five years old. we've reached this point like the internet age when we're all in and all wired. apple has done such a great job creating great products that you almost are there where it's not
3:16pm
incrementally that much better that i need to leap out and buy a new one. >> i've got to push back on that one. the cell phone companies and these technology names are not necessarily looking at the u.s. market for the growth. they are looking at the massive population growth outside of the united states. >> tim cook says china will be their biggest market. >> they are looking at population growth numbers outside the u.s. and for those folks they are starting not necessarily with the smartphone but with a simple mobile device and that's really what they are betting on. >> what do you think, jay? >> i think you're right. look at the iphone 4 s, can you get any more incremental from the iphone 4, looked exactly like the iphone 4 and what was the iphone 4 s, the best selling iphone of all time. there's incremental improvements. doesn't mean people aren't buying it. people still appreciate the incremental improvements and to maria's point there's a huge market out there. apple has 5%, 10%, less than 10%
3:17pm
of the overall mobile market. there's still a huge amount of room to grow. >> herb, maybe we should ask serie how to solve this. >> that was an innovation that didn't go the way it should, as was the apple maps. i got the 4s because i was trading up from an older android. if i get tired of this thing. wait for the next apple device, go over to the android, go back to the android? will i go back to a blackberry? i don't know. because we get into this situation where you want something new. you don't want the same old car if your lease is up or buying a new car. this is human nature. >> that's kind of not true though, isn't it, because a lot of people -- just looked at surveys that came out. there's 70% satisfaction with the iphone. people get locked into the ios ecosystem. that's the advantage of it. you might be an outlier in that you're willing to flip around from phone to phone. android to iphone and now you
3:18pm
are saying you might. the fact of the matter is they have built this strong ecosystem to say get an ipad and you'll like the way that uses. get an iphone, a mac and whatever else comes down the road. they will work nicely together. >> jay just argued against himself because in this case when i agree with you, by the way, jay, and i'm loathe to probably go somewhere else, but i don't need to rush out and buy it. i just necessarily need. i would like an iphone 5 but there's some issues. >> talking about the iphone 6, why go out and buy the iphone 5 if we're hearing rumblings of the iphone 6? that's what stopped me from getting the iphone 5. all of this talk about apple losing its school and something is going on with innovation coming to a halt, i guess you have to find out if we're actually seeing talented employees walk, because at the end of the day when steve jobs was alive you had all these
3:19pm
talent xwers followiat all ent engineers following steve to a. i'm wonder if there's evidence that some of the engineers are leaving and innovating are going elsewhere. do we have any evidence of that? that would be a real turning point. >> i haven't seen that. you have someone like bob mansfield in charge of hardware engineer who wanted to leave and tim cook got him to stay so they are able to retain the smart poem they want to retain. >> it might be the level below those guys and when i talk to people that i know in the valley actually talking to the folks at apple and who have been around apple for a long time. they talk about the more mid-level engineers who waited a year and are now sort of looking elsewhere or maybe looking elsewhere. >> maybe looking elsewhere. >> let's make one point very clear. apple is a spectacular company. they have done spectacular products. >> they will be innovating from here until there. it's a question of incrementally
3:20pm
making it what we need, the way we did five years ago because everything is getting so much closer. it's like flat screen tvs. do you really need to go out and buy a new one right now unless there's really something new. >> let's face it. let's face it. the only reason we're having this conversation is because of the stock in the last few months has gone from $700 to below $500. if it was still at $700, would we be having this conversation, herb? >> i wrote a piece in october 2nd making this case. stock was a lot higher. >> to your point about this idea of incremental upgrades, this is how apple has always been. just look at the difference of the first ipad, the second ipad and third ipad. look at the iphone line, always been incremental in the lineup. this is what apple does. it is incremental. no such thing as a massive change, right? so they have been operating pretty well on this system of incremental upgrades so i don't
3:21pm
see why the wheels are going to fall off and people will give up. >> remember, even with the android product, people are now adapting that more than they are -- look, i just think people are going to smartphones. got their smartphone and have to make a decision when they want to upgrade. >> everybody's favorite water cooler discussion right now. what up with apple? good job, guys. >> see you a little later. >> setting highs for the day but not saying a whole lot. the dow up right now, up about 24 points. >> and facebook's mystery announcement turned out to be a dud in the eyes of some investors can. a new social search function really help facebook monetize the business? that's next. >> and disturbing new data on how often people are tapping into their 401(k) retirement plans well before retirement age, and it could affect every single one of us down the line. big story no one else is talking about. but we got it here on "closing bell." stay tuned for that. [ man ] i've been out there most of my life.
3:22pm
you name it...i've hooked it. but there's one... one that's always eluded me.
3:23pm
thought i had it in the blizzard of '93. ha! never even came close. sometimes, i actually think it's mocking me. [ engine revs ] what?! quattro!!!!! ♪
3:24pm
welcome back. facebook failed to live up to its ipo high and it's been the company's big mystery announcement and now failing to live up to expectations. julia boorstin was there at mark zuckerberg's event there and is live from facebook headquarters. >> reporter: ceo mark zuckerberg unveiled graft search, one of the three most pillar of the company, a way to search people, photos within your social graph.
3:25pm
you can see where your friends have visited, find single friends nearby if you're looking to date. facebook wants users to spend more time in its network giving it more opportunity to show ads. >> we believe that if we give people the tools to map out this graph then that map that people build can be the basis for building a lot of different kinds of services for connecting. >> so why is the stock trading lower? graph search has beta tested for a few thousand people. doesn't include new ads and isn't on mobile devices. the social network is trying to take a bite out of a number of different businesses now. google, linkedin and yelp and match.com and the implications are hunk. users are pointed to bing search results along with those ads and we can certainly expect facebook to pair ads next to all search
3:26pm
results down the line. one thing to keep in mind is that privacy will be a huge issue. can you only share -- you can only search what's been shared with you which means people are likely to tighten their privacy settings in the wake of this announcement and facebook is going to be encouraging people to review which one is going to be listed and searchable down the line. maria. >> stay right there. >> yeah. so many reasons to tighten our privacy settings on facebook. as we bring in our next two guests to make sense of facebook's graph search, a name i don't understand, if it will actually translate to be a significant source of revenue for the company. that's what we'll explore. we mentioned the stock. falling on the announcement of very heavy, heavy fowl volume. >> here is lou kerner of the social internet fund who says the graph search is the next evolutionary step for facebook and cnet's ben parr says it's going to be a powerful tool.
3:27pm
welcome. >> you like this for the company, lou, for the bottom line. >> it's not revolutionary but evolutionary, and the big pillar of internet advertising is search, and nowback is getting in in a big way. >> ben, it improves our ability to find people on facebook, but can they make money? that's the question i guess that the investors are asking right now. >> i think investors are right to be worried about whether it can make money. the reason google search does so well is because it figures out what you're intending to search. i'm looking for a car. and that's not the same reason you'll search on facebook. i think they will make some revenue but it won't be a cash cow like when they launched their ad wars product. >> we were waiting for a game changer, and there's a debate as to whether or not this is. >> the problem with this is that all the speculation was around the phone and everyone got excited about a phone or a mobile announcement, so people were understandably
3:28pm
disappointed. facebook should have done more to set the expectations. >> julia, you were there. what was the feeling in the room as they were unveiling this thing? >> well, i think people were pretty impressed. everything went really smoothly in the demo and everyone had this auto complete system and you type in and it tries to anticipate what you're searching for. it's not totally unexpected. back in september at tech crunch disrupt zuckerberg said that search is something they are seriously considering getting in. this will be a future revenue stream for the company, and he talked a lot about the potential in search so he knew this was kind of in the works so it's not totally unexpected, but i think to get to the privacy issue the fact that you're only searching within what's been shared with you within a small group of friends, the greatest advantage and the potential downfall. the advantage is you're getting really targeted and really valuable search results because it's what your friends like and on the other side it's limited to your social circle. >> what about that, lou, and
3:29pm
what do you think facebook needs to do in terms of moving the needle in terms of more power? >> this is what facebook does. they innovate products and it rate it. they interviews it. mark zuckerberg is a slave to data. he sees what people do, and then he it rates and he it rates and he it rates. search is the holy grail of internet advertising. the market is going to continue to underestimate facebook and they underestimated it will ever make advertising revenue. now they are underestimating search revenue. >> hold on, hold on. >> i think it's a great product, but i don't think it's going to make a ton of money. again, it's the issue of intent. the thing is what am i going to be searching on the new facebook thing? i'm going to be searching for friends, photos of friends from 1999 or things like that. there's not going to be that many of the searches of the high value purchases that make google search so valuable. >> but, again, he's not looking
3:30pm
at what is going to happen next week, next month, next year and the bottom line is every day people are spending more and more time on facebook, and they will spend money and will do searches. >> or spend more time on it, no, absolutely. i'm just worried that they won't be able to do as good a targeting as google can do. >> look at what helped with yelp stock. a reason that yelp stock fell during this announcement. if i want to serve how my friends like, why bother doing what strangers like on yelp if i can search within the recommendations of people i trust. >> makes a lot of sense actually, but are they going to make money on this? is this actually going to be a profitable endeavor or just something that's useful and another tool? >> and are we being too impatient about this? >> the bottom line is advertisers want to reach people, and the way they reach people is they reach them where they are spending time and they reach them also. ben is exactly right. they reach them the most valuable when there's intent and
3:31pm
facebook is going to increasingly be there during the invention funnel. >> are we ever going to get a facebook phone? how would it change my life? >> i don't think facebook itself will build a phone, but i do think that there will be a facebook os in the near future, especially for the emerging markets. especially where the value problem is. they could have a phone and have it go wildly successful in emerging markets around the world. >> well, at this point, you know, the stock has not done anything today on the news. of course, it's down, but it's been obviously trading up. would you buy facebook right here, ben? >> i think it's a good buy. >> really? >> you don't like the graph search but you like the stock. >> graph search is one of many different revenue streams. i don't think graph will be a huge one, but i trust zuckerberg in his ability to figure out horrevenue streams and figure out and grow the network and do more with advertisers. i just trust the management team >> you want to buy it at $30?
3:32pm
>> i would buy it at $30. >> you already own it? >> what did you pay? >> i bought it when it was still private. >> okay. >> would you buy it at $30 a share? >> i would buy it today. they just started. they have made a big splash in display. they are getting it to search and will be huge e-commerce and huge in video. this will be along with google the king of internet advertising. >> okay. >> market speaking. down 2.5% on very heavy volume. >> see you soon. a market that's at the high of the day. down 61 points. the dow jones industrial average now up about 26 points, as you can see. >> big story here. cvs says it will not carry johnson & johnson's tylenol after years of production. how much pain is this going to cause for j&j stock? that coming up. >> the entire nation could be in a world of hurt if lawmakers don't make a deal on spending cuts. ahead of the debt ceiling debate
3:33pm
alan simpson will join me. we'll get his take on that and a lot more. stay with us. at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. ♪ [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport.
3:34pm
an entirely new pursuit.
3:35pm
3:36pm
. welcome back. okay. some painful news for drug-maker johnson & johnson. cvs says it will not carry its tylenol products in its stores after years of disruption. pfizer is the news of breakup speculation. if you're shopping for a drug stock, which is the better buy, j&j or pfizer? talking numbers on both sides. technical side of the story ennis tanner is with riskreversal.com and on the fundamentals steve cortes is founder of veracruz and a cnbc contributor. kick us off with fundamentals, steve, how are the companies doing? >> i like both companies and like the entire space but i do prefer johnson & johnson. if there's something that we can count on right now in america, as a country we're getting both older and we are getting fatter and johnson & johnson frankly is one of the best ways that i can
3:37pm
think of to play with both of those macro trends. the older part i want to be in pharmaceuticals generically because i want to be involved in a demographic upswing and inters of the obesity side, johnson & johnson, why i prefer it to be-to-pfizer, and why johnson & johnson has an advantage when it comes to type ii diabetes. they are further along and in the best position of any farm sewell suit call company to release a serious drug application which is a type two diabetes inhibitor. see a very bright future ahead for j&j. like them both but like j&j better. >> ennis, what do you think? >> i agree with steve. health care as a whole is one of the best stocks to be in but i disagree with j&j over pfizer and if you look at the charts you'll see what i mean. j&j has had a nice uptrend and it has had trouble breaking out above the october high so the october high was around 72,
3:38pm
75ish. it hasn't been able to get up there convincing which whereas if we look at pfizer in contrast you'll see that pfizer has been able to convincingly break out about the october highs showing more strength from the buyers and that's why i like it technically. >> i do think that's an important point. also, let's remember. even though pfizer has done better and most phrma has done better. j&j did print a three-year high so a post-crisis high so it's doing very well itself. the reason it has done, underperformed other pharma, has been patent expiration, a victim of some very serious and profitable drugs hitting a patent cliff, as it were. >> but that's not going away, right, steve? >> it is. it's largely behind johnson & johnson is my point. going forward i think the worst is over in terms of patent expiration with some very serious r & d investment in j&j, i think the future actually looks much brighter from here. >> i hope that the worst is over in terms of the tylenol
3:39pm
cancellations because that's been my cure for all ills for decades. >> good point. >> gentlemen, thank you. we'll be watching that story. pfizer versus j&j. bill, over to you. >> told we have some breaking news on dell. uh-oh, what's going on? >> david faber has been working the story and has confirm some of the details out there in terms of jpmorgan advising dell silver like partners appears to be the driving force in terms of private equity firms looking to make an investment in dell and perhaps take it private. another factor, a canadian pension fund also looking perhaps to take a major stake there. dell at the highs of the day, monster volume today on dell, bill. over 131 million shares. that's well over four times the average daily volume over the last ten days and it's spiked in volume with all the speculation. >> and a tremendous amount of skepticism that they would even be able to figure out a leveraged buyout. >> shares of a seven and a half
3:40pm
month high. >> all right, bertha. thank you very much. as we head towards the close here, we've got the dow up 32 points at highs of the session. is the stock market set up for a fall though with fitch warning on america's credit rating due to the debt ceiling fight? our market pros will weigh in on that, plus other things coming up. and also ahead, a million jobs, that's what our failing infrastructure might cost the new according to a new report coming out and we'll hear why that's exhibit "a" in the case for why we need even higher taxes to pay for road and bridge improvements. stay tuned. more "closing bell" coming your way. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else.
3:41pm
tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5412. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger,
3:42pm
you need an ally. ally bank. your money needs an ally. nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clients in today. [ male announcer ] save on ground shipping at fedex office. olaf gets great rewards for his small business! pizza! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! helium delivery. put it on my spark card! [ pop! ] [ garth ] why settle for less? great businesses deserve great rewards!
3:43pm
awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? welcome back. fixed rating injuries sounding the alarge bell. the message simple. raise the debt ceiling or risk a u.s. downgrade. >> markets are in a holding pattern until the debt ceiling
3:44pm
fight is over and the backdrop for the fitch warning is quite different this time around, and pete will explain why in just a moment. just said to you during the break. a heck of a holding pattern if that's what the market is in. plenty of sectors hitting new highs right now. no question about it. this is the year that we springboard up now. not just to climb the wall of worry. get through the debt ceiling debate, continuing resolution. it's going to be bumpy. we'll take full advantage of a market falldown during that period because you've got three main things going for you. housing turning for real, not just an inventory real liquiification and foreclosures. all that have stuff turning for real. it will turn into unemployment back half of the year. a little better transparency on fiscal policy. not necessarily the fix but the transparency. business cap "x" second half of the year and every single central bank in the world reflating so you're very bull strategic defense initiative. >> very bullish. >> i guess the question is are you able to buy into that market at much lower houses? how substantial could a decline be on the so-called bumps in the
3:45pm
road? there's some precedent for that. not the first time we've been through it. we've been back through it in 2011 and there's a significant pullback. there's a bit of a been there, done that and we haven't seen the kind of volatility we've seen and in the difference of backdrop the republicans sort of have their backs against the wall. they were forced to concede on taxes during the cliff debate, and now i think this is their chance to get concession on spending, and i think they are going to do that. this is going to go to the wall and that will create volatility. >> the president has been very clear. he's not going to negotiate on the debt ceiling. >> that's how politicians talk. at the end of the day negotiations will have to happen. >> he has to? >> you're not al lone in being wildly bullish right now and i think -- i know that's affecting your investment philosophy, the fear indicator, the vix, at at 52-week low and moving lower. with retoo complacent and expecting too much from the stock market right now? >> short term, as we talked
3:46pm
about the holding pattern with the continuous fractiousness in washington, you're going to have that volatility index rise. we see that coming in february and march but then it holds itself. more money coming back in. the biggest concern in the market is not the equity market. it's rising yields. it's rising treasury yields. it's the first year of the potential of three or four years in a row which we should see rising treasury yields. >> like i said, he's not alone with that, and you think there is big complacency. >> tremendous complacency. fun flows into mutual funds. the retail investors are finally entering the market. the last time we saw these kind of fun flows was in 2001 early in the year and in 2008, and within several months there after we saw market compressions. >> what kind-of-2013 are you looking for? >> a bumpy ride. not nearly as bullish as chris is. not as big a buyer of the housing recovery but we have central banks printing, over $1 trillion that the federal
3:47pm
reserve has pledged. >> you can't fight the fed. >> and even though i don't expect fundamentals to be that great, we're probably net-net, a little bit higher. >> what about the funding inflows he's talking about, the public signaling the end of a cycle here? >> over the next few weeks, yes, maybe through the third week of march, but certainly the herd is in short-dated zero%-producing income assets, short-dated assets. the hurt is not in equities, so us a climb the so-called wall of worry get through the continuing resolution. every little bit of good news that comes in should be applauded because a herd is simply not in equity land. >> if we do have this fight and more washington dysfunction, which i know is what you're expecting even though you think at the end of the day there will be negotiations and spending cuts, the market again won't react the way it did at the end of the year because of the central bank easing and all of the money on the sidelines. >> should pull back between the 5% to 7%. if nothing hits once andness nothing gets resolved, 10 and a
3:48pm
half times earnings once again. the three big worries didn't happen, china hard landing, double-dip recession in the u.s. and the fiscal cliff stopping us in our tracks. as we got through that, the market ral you had. this year it's almost the same thing, but one big, big difference. the big difference is you're just starting to see the money come into the market. didn't see that last year. we had negative influence so this comfort factor of the craziness that goes on on these debates is getting more comfortable on the part of people who move large amounts of money all the way around the world. >> what about apple? talking about apple all day long because the stock has had such a stunning move. it's below 500 for the first time in 11 months. looks like obviously that's where that was closing. >> last year's market bellwether. saying something about the market? >> it may. i think it makes you question whether or not people are not really moving into the market with the kind of vigor that perhaps chris is suggesting they will. i think the retail movement into
3:49pm
equities is a fake, frankly. >> i think it shows the mutual fund managers out there are rotating their positions right now. i think they are looking for so-called bargains with a growth story that doesn't have the big hurdles in the way, and we've seen it across all of the indirect plays that filter in the housing, so i think you're going to see more and more of that cyclical growth. >> good to see you both. >> thank you so much. >> we'll see you soon. >> in the final stretch. 12 minutes before the closing bell sounds. a pretty good possible check it out. up 28 points on the dow jones industrial average right now. >> minus the technology stocks. now, if you think the face's wealthiest are giving less to charity because of higher taxes, think again. when we come back, the surprising report on why even with new taxes it could be a bonanza year for charitable giving. >> also ahead, private chefs usually associated with the rich and famous, but a new company is making it affordable for almost anybody to host their own dinner cooked by private and sometimes famous chefs. it's been described as the net jets of private chefs. the man behind it is coming up on the program.
3:50pm
♪ ♪ ♪ [ male announcer ] some day, your life will flash before your eyes. ♪ make it worth watching. ♪ the new 2013 lexus ls. an entirely new pursuit.
3:51pm
[ male announcer ] you are a business pro. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ male announcer ] just like you, business pro. just like you. go national. go like a pro.
3:52pm
3:53pm
welcome back. more good news coming out of housing sector. let's get to diana olick with today's reality check. >> reporter: home prices jumped 7.7% from a year ago including distressed properties. that's the biggest leap since 2006 according to core logic. december's gains are were potentially close to 8%. take out distressed sales and gains are up 7.6%. investors heavy and supplies super low. six states left out of the party with price drops. they include new jersey which has an enormous backlog of distressed properties. now, one warning. i've always got a warning. really low supply is driving these price gains, not so much demand. if prices rise faster than income growth and supplies rise in the spring. prices could take a u-turn. now not ten minutes ago i got
3:54pm
off the phone with glen kellman, a real estate website. he's very concerned about the real drop in supply that he's seeing in the first couple of weeks of january, and january is usually when folks come back in vacation and decide to put their houses on the market so not a good sign good forward. reality check.cnbc.com. >> prices go up, got to lower supply. reading somebody's blog in new york city, supply in new york is also very, very low for certain price points right now so the markets -- the prices are going up at that point. >> we had the first ipo of the year today. did you know that? >> it's right here. usa compression partners. usac. it's master limited partnership. >> they provide natural gas compression services, and this is a big business now. >> but it's trading lower. >> i wouldn't call it a success for shareholders. >> opened at 17.50 but they increased amount of shares they are trading from 10 million to
3:55pm
11 million. wanted to raise $200 million and they did. >> from the company's point of view, this is fine right now. >> a small technical question here, bob. you usually want to see four characters at the new york stock exchange. >> started changing that. can do four characters at the nasdaq. want to point out that's very important is these are master limited partnerships, very hot investments. three of them going public this week. these massive limited partnerships are backed by physical assets. oil and gas pipelines that throw off a lot of money and the people who run them are required to pay out most of the income to the investors like reits so this huge compression pays a 9% dividend yield and that's why investors are really interested in it right now. one thing you have to be careful, a lot of taxation issues associated. k-1s. it's a special tax form. have you to file for every single state that you're in
3:56pm
where the pipeline might go through. it's a little complicated so some people have been buying exchange-traded funds because there's mlp exchange-traded funds. the point is if you're interested in dividends, these -- these kinds of deals are very, very host investments. two other ones are coming this week. >> not really seeing the kind of pace that we've seen for ipos. haven't seen the business come back. >> norwegian cruise lines goes back. not a massive limited partnership. >> that's a very well known name. >> sure they will be trying it out. >> get me my sunglasses. >> closing countdown coming up. >> and is congress threatening the economy with the looming fight over the debt ceiling? something we're all talking about, and will washington ever get serious about fixing the debt crisis. do not miss, this should be pay-per-view's, maria's exclusive interview with alan simpson coming up on the "closing bell." >> he's always great. we'll be right back. tends to stay in motion. staying active can actually ease arthritis symptoms.
3:57pm
but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. celebrex can be taken with or without food. and it's not a narcotic. you and your doctor should balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers.
3:58pm
do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides. get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor your medical history. and find an arthritis treatment for you. visit celebrex.com and ask your doctor about celebrex. for a body in motion. i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! office superstore ink retailer in america. now get $6 back in staples rewards for every ink cartridge you recycle when you spend $50 on hp ink. staples. that was easy. ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country,
3:59pm
and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. welcome back. 90 seconds left here. the dow opened lower this morning and finishing higher. a gain of about 28 points. one bullish indicator and one bearish indicator. the bullish indicator. dow transportation average looks like it's going to close at an all-time high today. trust me. that's a bullish indicator. the bearish indicator, the volatility index, the fear indicator at a 52-week low. one-year chart of the vix, at